How We Helped a First-Time buyer with Bad Credit Secure his first Home

Introduction:

When Thomas approached us in July 2024, he was worried about their credit score and unsure if homeownership was even possible. With a score of just 525 (Experian) and two past defaults, securing a mortgage seemed like a long shot. But through our persistence and expertise, we helped them unlock the door to their first home just four months later. Here's how we made it happen.

Client Background:

Our client, a single professional earning £34,000 annually, had been renting for years but was eager to buy their first property in the UK. He has found a home valued at £140,000 and saved enough to cover just 5% of the deposit (£7,000). However, with a low credit score, they were unsure whether any lender would accept them.

Challenges:

The client's credit score was significantly impacted by two defaults—one on a credit card in 2020 and another from a loan in 2018. These blemishes made lenders hesitant, and their low deposit compounded the difficulty. Two banks declined the initial mortgage application, leaving our client frustrated and doubtful about his prospects.

Our Approach:

We knew that a poor credit history doesn't always mean the end of the road, so we took a personalised approach. After assessing his financial situation and history, we targeted lenders who specialise in clients with less-than-perfect credit scores. Despite the setbacks from the first two lenders, we didn't give up and secured a third lender who approved their mortgage with only a 5% deposit.

Solution & Results:

In early October 2024, just four months after approaching us, the client was holding the keys to his very first home—no longer paying rent and living in a place they could finally call their own. We successfully secured a mortgage despite the challenges of their credit history, proving that persistence and expertise can make all the difference.

Conclusion:

At Smartlend, we believe that homeownership is possible even when the odds seem stacked against you. If you're struggling with poor credit or a small deposit, don’t give up. Contact our team today, and let’s see how we can help you turn your dream of owning a home into a reality.

Your home may be repossessed if you do not keep up repayments on your

mortgage.

‍

‍